From Cheapest Car to Leading EV Market in India

“I don’t believe in taking right decisions. I take decisions and then make them right.” — Ratan Tata

The story of Tata Motors reflects what their chairman, Ratan Tata once said. The transition from making average cars to acquiring JRL to making great EVs in India. The journey of the company has been incredible.

Before we jump into this interesting topic, let’s talk a little about the Tata Group and Tata Motors.

If you have been to India you must have noticed a company named “Tata” pretty much in all sectors. Mostly you would see cars, trucks, and locomotives having Tata Logo. But the group has its hold in sectors like airlines, chemicals, software consulting, steel, e-commerce, and many more.

Making of the legendary Tata Motors

It all started in 1945 when Tata Motors was established as Tata Engineering and Locomotive Company to manufacture locomotives. In 1954, with a joint venture with Mercedes-Benz, they started manufacturing commercial vehicles. After about 15 years, in partnership with Mercedes-Benz, they started manufacturing Mercedes-Benz cars in India.

They produced trucks for many years that became the most sited sign of Tata motors in India. In 1991, they stepped into the market of commercial vehicles with the introduction of Tata Sierra.

This was the beginning of a new chapter. After Sierra, Tata Motors launched many successful cars and SUVs and became one of the leading car manufacturers in India.

World’s Cheapest Car

“Today’s story started some years ago when I observed families riding on two-wheelers. The father driving a scooter, his young kid standing in front of him, his wife sitting behind him holding a baby. I asked myself whether one could conceive of a safe, affordable, all-weather form of transport for such a family,”. — Ratan Tata at the launch event of the World’s cheapest car in New Delhi.

In 2003, seeing a family of 4 on a 2 wheeler, Ratan Tata took it on himself to come up with an affordable and yet safer alternative for such families. He conceived the idea of the Tata Nano as the cheapest car the World has ever seen.

The car was promised at 100,000 INR. By the time it was launched, it breached its promised price and taxes made it more expensive. The corners were cut to make this car cheaper. Even after these circumstances, it was the cheapest car.

Nano was supposed to bring a revolution. The idea of Nano created a sensation but the price hike and taxes made it a little more expensive than what was promised. This did not resonate with the buyers.

Tata tried to make it work with lower than ever margins. It was a great effort by Tata Motors to truly work for the betterment of the country.

Nano was not a success story for Tata but it did leave a mark on the automotive industry.

JLR acquisition and making it profitable

In 2008, when the recession was setting in and the demand for luxury cars and SUVs decreased. The iconic brand Jaguar and Land Rover was creeping towards significant loss.

The light of hope came for JRL in the form of acquisition. Tata Motors acquired the Jaguar Land Rover businesses from Ford Motor Company for a net consideration of US $2.3 billion.

People called Ratan Tata crazy when he went for the acquisition. With his futuristic approach, leadership, and vision, he set new standards for JLR. After about 10 years of acquisition, sales jumped from less than 200,000 units a year to more than 600,000 units.

With innovation at the company’s heart, new standards were set in engineering and automotive technologies.

Great and affordable EVs

Tata Motors entered the EV business in 2017 by winning the contract to sell 10,000 EVs to the government.

As their EVs began to hit the road, they gained a good understanding of the real-world conditions for electric vehicles. This helped them acquire skills to be ready for what was coming next.

The design house of JLR is the center of the design of Tata Motors now. Their new cars are way ahead of the previous generation in terms of design, quality, and technology.

Tigor EV was the first EV launched by the company, but what struck the chord was the launch of Nexon EV. It was an EV variant of the successful Nexon.

With the success of Nexon EV, Tata Motors had more than 60% of the EV market share in India. In FY20, they sold around 1325 EVs whereas the numbers are really looking good in FY22 with more than 4400 EVs.

The Latest Concept, Avinya

Recently Tata Motor showcased their new EV, the Tata Avinya. It does not look like any other car you have seen before.

Years of continuous innovation in Engineering and Design led the company to this moment. The name, Avinya itself means innovation in Sanskrit and it stands true to its name.

Avinya is the combination of a hatchback, an MPV, and an SUV leading to a unique design. The car is loaded with advanced features like driver aids, lane departure warning, lane assist, and ADAS features. It also gets a glass roof similar to the sky roof of Tesla.

It’s still a concept, we will have to wait to see the variant that will be launched.

Tata EVs v/s Tesla

This is the 3rd gen of Tata EVs. 2nd gen is yet to roll out in the market. While many are waiting for Tesla’s introduction in the Indian market, Tata is raising the bar with such beautifully designed exteriors, interiors, and technology.

To make traveling long distances possible, Tata Motors is building the charging infrastructure across the country.

Importing Tesla has 100% tax implications which makes it unaffordable for most and does not justify the price. Tata Motors EVs are coming up with great and affordable cars for Indian consumers.

Tata EVs are completely made in India. Group of Tata companies like Tata Power, Tata Chemicals, Tata Autocomp, Tata Elxsi, and many others have come together to make advances in the technology and make them affordable.